Legislature(1995 - 1996)
04/23/1996 04:50 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 215(RES)
"An Act streamlining the functions of state government,
including allowing agents selling fish and game
licenses and tags to retain certain compensation;
authorizing the Department of Health and Social Services
to award grants for certain services for
developmentally delayed or disabled children; relating
to rabies control and administration of flour and bread
standards by the Department of Environmental
Conservation; repealing the Athletic Commission, the
regulation of boxing and wrestling, the certification
of professional geologists, and the Water Resources Board;
repealing certain filing statements and bonds for
enforcement and collection of certain taxes; relating to
service of process on nonresident taxpayers; and
providing for an effective date."
Nancy Slagle, OMB was invited to join the committee. She
said through the bill the Governor was trying to find
efficiencies and economies wherever possible within the
State government operations.
Using the RES version she reviewed the bill before the
committee. Sections 1, 2 and 3 dealt with the Department of
Fish and Game in allowing vendors who sell sport fishing and
hunting licenses and tags to retain the full 5% they are
allowed to for compensation. For services at this time they
are allowed only a portion and the remainder is transmitted
to the Department for recalculation and then resubmission
back to the vendor. Section 4 dealt with the Department of
Commerce and Economic Development which eliminated the non-
resident affidavit program also referenced in the repealer
of section 9. Section 5 and 6 dealt with the Department of
Health and Social Services and the infant learning program.
It gave the department the ability to grant from the infant
learning program for their services. Section 7 dealt with
repealers. One portion dealt with the requirements for the
Department of Environmental Conservation concerning the
reporting and care of animals suspected of rabies and
disposal of rabid animals. This eliminated the involvement
of DEC. In response to Senator Phillips question about
unorganized areas, Janice Adair informed the committee that
these areas are dealt with through Public Health. Ms.
Slagle continued and said the second part of section nine
dealt with the vitamin and mineral content of bread and
flour. Section 8 also dealt with several repealers which
eliminated the Athletic Commission, Boxing and Wrestling,
professional geologists and Water Resources Board. Section
9 was a repealer for Fish and Game which also ties to the
vendor compensation tied to sections 1, 2 and 3. Section 10
was transitional language and section 11, 12 and 13 were the
effective dates.
Co-chairman Halford asked about the amendments. She
indicated there were amendments #1, 2, 3, 4, 5 and 6; one of
which dealt with calculation of terminal leave payments for
State employees basing it on annualized rate of pay.
Another dealt with the life of a warrant reducing the time
by statute to one year which complied then with the
unclaimed property statute. The next amendment had to do
with collecting taxes on insurance premiums. Basically it
is collected on an annual basis. It is now proposed to be
done on a quarterly basis which is supported by the
insurance industry. Co-chairman Halford at this time
indicated his concern with the amendments in that they would
add another section to the title. Ms. Slagle said in order
to delete a portion of the title was a question for the
legal department. The direction from the Department of Law
was that the specific items be identified. Co-chairman
Halford said he would rather not run a title a page long.
He said he would consider the amendments with the
understanding that the portion of each amendment that goes
into the title would not be inserted unless necessary. He
referred to amendment #1 which would authorize the
Commissioner of Fish and Game to award grants for certain
resource activities. Ms. Slagle explained that this
amendment was in the original bill submitted. Senate RES
removed this and the department has since worked with Senate
President Pearce on more appropriate language. The
department would now be able to provide grants where they
have not had the authority previously. Specifically, it
related to Exxon Valdez monies and other small grants
through the National Marine Fisheries Service. Senator
Sharp said he did not want to see Fish and Game become
another department with grant authority. Co-chairman
Halford asked if there were any grants proposed in the
budget at this time through Fish and Game. Ms. Slagle said
she knew the department was working with private property
owners along the Kenai River in construction demonstration
projects to restore and protect streamside habitat impacted
by human development and they would be looking at small
grants on the average of about $6,000 each. Those would be
funded by the National Marine Fisheries Service. The
department would have to either budget this at the
legislative level or get approval from OMB for any type of
line item transfer if monies needed to go for grants.
Senator Sharp asked if the department would have the
authority to give grants to regional authorities to manage
fish and game and said he felt this was a problem. Senator
Zharoff asked what type of grants would be given out. Co-
chairman Halford indicated the presented information was all
that was before the committee. Senator Zharoff moved
amendment #1 and it failed to be adopted.
Mike McMullen, Personnel Manager, Department of
Administration was invited to join the committee and
explained amendment #2. He said this amendment would deal
with how terminal leave was paid. Currently depending on
the balance and what time a person leaves a modest balance
may cover five holidays or it may cover one holiday. This
practice was developed to compensate the employee. Through
collective bargaining most employees are paid for their
balance time at their current rate. This amendment would do
the same for everyone covered by statute and not the
collective bargaining agreement. The second change
eliminates the option of terminal leave payoffs in
installments over a period of time. Most separated
employees do not choose this form of termination and because
of its' cumbersomeness the department would like to see it
eliminated. The third change was the proposed inclusion in
the repealer language of AS 39.20.250 (b) which currently
provides an employee paid a terminal leave amount and then
returns to work for the State during a period of time that
terminal leave would have covered the time that the employee
is required to buy back the leave payment and have that
leave put back on the books. In one of the collective
bargaining agreements this provision had been eliminated and
the wisdom of that has been negotiated and this was being
pursued in the statute. Senator Zharoff asked if the
bargaining units agree with this and Mr. McMullen said that
these statutes do not affect the bargaining units and their
rights come from their own bargaining rights. In terms of
similarities, the leave cash-in is available in almost all
bargaining units. The lump sum payment is already in place,
the elimination of payback is in place and those would not
change with this law, but rather as future negotiations
would change them.
Co-chairman Halford asked if there was any fiscal impact
with this amendment and Mr. McMullen advised there was. It
would be .04 of 1% of the personal services budget spread
over all the BRU's of the State. The funds for this came
from the catastrophic reserve account and the Division of
Finance would adjust that assessment against payroll as
needed. Senator Sharp asked if this would save on leave
accrual and Mr. McMullen said that leave accrual stops at
the time of termination. Senator Sharp moved amendment #2
and without objection it was adopted excluding the title
provision as per prior discussion.
Joe Thomas, Division of Finance was invited to join the
committee. He explained amendment #3 and said this would
just change the statute for time limitation on payment of a
warrant so that it would be consistent with the statute on
unclaimed property. Currently the statute on unclaimed
property considers warrants after one year to be unclaimed
property. The statute worded for AS 37.05.180 says two
years for stale dated. This amendment would make the two
consistent. There would be no fiscal note regarding this
amendment. Senator Phillips moved amendment #3 and without
objection it was adopted excluding the title provision.
Bob Bartholomew, Income & Excise Audit Division, Department
of Revenue was invited to join the committee. He explained
amendment #4 would resulted in two changes to the bill. One
related to insurance companies that pay annually and in
March submit a paper check to the Treasury Division and also
to Commerce which would require electronic payment. The
other change related to making the payment be quarterly
which would be consistent with what most other states do.
Department of Revenue had already submitted a fiscal note to
SB 215 in which the department thought this amendment was
already in. This bill would earn the state treasury an
additional $600,000/year in interest income by going to
quarterly payments. There would be a one-time boost in
revenue for FY 97. Revenues would be up by $7 million.
When the change would be made it would be almost five
quarters after they collected. When brought current an
extra quarter would be picked up. Senator Phillips moved
amendment #4 and without objection it was adopted excluding
the title provision. Ms. Slagle at this point voiced the
position of the insurance industry limiting tax collections
to at least annually but not more that once each quarter.
Co-chairman Halford advised that the amendment had been
adopted and would reflect the insertion of "no more than
once each quarter". Senator Phillips moved the conceptual
amendment and without objection it was adopted.
Carol Carroll, Department of Natural Resources was invited
to join the committee. She said that amendment #5 would
modify the process for both industry and department to not
have to report annual expenditure activity that may be less
that a floor of $250,000. If a credit would be taken in
excess of $40,000 the industry would have to get this
certified by a CPA. She referred to section (e) and asked
"September 30" be deleted and "within six months of the
receipt of the request" be inserted. This would also take
place under section (f). The amendment would then be
internally consistent. Co-chairman Halford asked if the
credit would still apply at whatever level it had applied
before and Ms. Carroll concurred. This related only to the
reporting of the expenditure and not credits. There would
be an option of waiting until the amount was at $250,000 or
at the time one wanted to take the credit at whatever the
amount the expenditure activity was. There would be no
limiting of the availability of the credit. Senator Sharp
moved amendment #5 as amended and without objection it was
adopted as amended.
Nancy Slagle said that in amendment #6 the University of
Alaska had requested this change of policy in order for them
to direct deposit paychecks for employees. This would cut
down on administrative costs and provide for a cost savings.
Ms. Slagle advised the co-chairman that this was not a
requirement but an option. The University perceived this
amendment as an option rather than requirement. Co-chairman
Halford said the way the language was stated if the
University adopted this measure it would be a requirement.
Senator Phillips suggested deleting the word "require" and
state "may deposit". Ms. Slagle said she would research the
matter of direct deposit being deposited in wrong account.
Co-chairman Halford held the bill in committee for further
review.
ADJOURNMENT
Co-chairman Halford recessed until 9:00 a.m. tomorrow.
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